The Vietnam Dairy Products Joint Stock Company (Vinamilk) has fully removed the foreign ownership limit on its shares following approval from the company’s annual general meeting (AGM) in May. The cap was previously 49 per cent.

The State Capital Investment Corporation (SCIC) is currently Vinamilk’s largest shareholder, with 45.06 per cent of charter capital, followed by the F&N Dairy Investment Pte Led (F&E) from Singapore with 11.03 per cent.

Foreign investors already own 49 per cent of Vietnam’s largest dairy company.

Circular No. 60, signed by former Prime Minister Nguyen Tan Dung, permits foreign shareholdings to be lifted to 100 per cent in most sectors and enterprises, with the decision to be made by each enterprise. The limit in the banking sector, however, remained at the existing 30 per cent.

Both the SCIC and F&N agreed with the lifting at Vinamilk’s AGM.

Ms. Mai Kieu Lien, CEO of Vinamilk, said that the company is valued at $1.5 billion and $8 billion in market capitalization. Foreign investors have an eye on the company because of its branding and it will not be changed.

The State still holds over 45 per via the SCIC, which has no plans to divest from Vinamilk this year. According to Ms. Le Thi Bang Tam, Chairwoman of Vinamilk, “the divestment of State capital from Vinamilk completely depends on the SCIC.”

Vinamilk’s business performance is impressive. In 2015 it recorded total revenue of some VND40.22 trillion ($1.8 billion), an increase of 14 per cent year-on-year, and after-tax profit of some VND7.77 trillion ($348.40 million), up 28 per cent.

Business targets for this year include revenue of VND44.56 trillion ($1.99 billion), an increase of 11 per cent against 2015, and after-tax profits of VND8.26 trillion ($370.37 million), 6 per cent higher.